Deferred Preneed Funeral and Cemetery Receipts Held in Trust and Care Trusts’ Corpus

Deferred Preneed Funeral and Cemetery Receipts Held in Trust

We consolidate the merchandise and service trusts associated with our preneed funeral and cemetery activities in accordance with the Consolidation Topic of the ASC. Although the guidance requires the consolidation of the merchandise and service trusts, it does not change the legal relationships among the trusts, us, or our customers. The customers are the legal beneficiaries of these merchandise and service trusts, and therefore their interests in these trusts represent a liability to us.

The components of Deferred preneed funeral and cemetery receipts held in trust in our unaudited condensed consolidated balance sheet at June 30, 2014 and December 31, 2013 are detailed below.



	June 30, 2014									December 31, 2013
	Preneed Funeral			Preneed Cemetery			Total			Preneed Funeral			Preneed Cemetery			Total
	(In thousands)
Trust investments	$	1,678,206		$	1,656,817		$	3,335,023		$	1,647,273		$	1,585,367		$	3,232,640
Accrued trust operating payables and other	(1,801		)	(2,262		)	(4,063		)	(1,108		)	(1,698		)	(2,806		)
Deferred preneed funeral and cemetery receipts held in trust	$	1,676,405		$	1,654,555		$	3,330,960		$	1,646,165		$	1,583,669		$	3,229,834

Care Trusts’ Corpus

The Care trusts’ corpus reflected in our unaudited condensed consolidated balance sheet represents the cemetery perpetual care trusts, including the related accrued expenses.

The components of Care trusts’ corpus in our unaudited condensed consolidated balance sheet at June 30, 2014 and December 31, 2013 are detailed below.



	June 30, 2014			December 31, 2013
	(In thousands)
Cemetery perpetual care trust investments	$	1,405,074		$	1,344,322
Accrued trust operating payables and other	(807		)	(1,748		)
Care trusts’ corpus	$	1,404,267		$	1,342,574

Other Income (Expense), Net

The components of Other income (expense), net in our unaudited condensed consolidated statement of operations for the three and six months ended June 30, 2014 and 2013 are detailed below. See Notes 4, 5, and 6 for further discussion of the amounts related to the funeral, cemetery, and cemetery perpetual care trusts.



	Three Months Ended June 30, 2014
	Funeral Trusts			Cemetery Trusts			Cemetery Perpetual Care Trusts			Other, Net		Total
				(In thousands)
Realized gains	$	15,911		$	20,655		$	9,824		$	—	$	46,390
Realized losses	(2,665		)	(3,826		)	(327		)	—		(6,818		)
Impairment charges	(119		)	(179		)	(7		)	—		(305		)
Interest, dividend, and other ordinary income	7,900			4,981			12,385			—		25,266
Trust expenses and income taxes	(4,978		)	(4,377		)	(2,127		)	—		(11,482		)
Net trust investment income	16,049			17,254			19,748			—		53,051
Reclassification to deferred preneed funeral and cemetery receipts held in trust and care trusts’ corpus	(16,049		)	(17,254		)	(19,748		)	—		(53,051		)
Other income (expense), net	—			—			—			50		50
Total other income, net	$	—		$	—		$	—		$	50	$	50



	Six Months Ended June 30, 2014
	Funeral Trusts			Cemetery Trusts			Cemetery Perpetual Care Trusts			Other, Net		Total
				(In thousands)
Realized gains	$	32,012		$	46,187		$	14,869		$	—	$	93,068
Realized losses	(4,139		)	(6,125		)	(664		)	—		(10,928		)
Impairment charges	(370		)	(518		)	(47		)	—		(935		)
Interest, dividend, and other ordinary income	13,474			7,476			21,971			—		42,921
Trust expenses and income taxes	(9,445		)	(9,192		)	(3,674		)	—		(22,311		)
Net trust investment income	31,532			37,828			32,455			—		101,815
Reclassification to deferred preneed funeral and cemetery receipts held in trust and care trusts’ corpus	(31,532		)	(37,828		)	(32,455		)	—		(101,815		)
Other expense (expense), net	—			—			—			1,586		1,586
Total other income, net	$	—		$	—		$	—		$	1,586	$	1,586



	Three Months Ended June 30, 2013
	Funeral Trusts			Cemetery Trusts			Cemetery Perpetual Care Trusts			Other, Net			Total
				(In thousands)
Realized gains	$	17,330		$	29,743		$	5,119		$	—		$	52,192
Realized losses	(4,445		)	(6,885		)	(440		)	—			(11,770		)
Impairment charges	(446		)	(940		)	(126		)	—			(1,512		)
Interest, dividend, and other ordinary income	14,206			8,915			7,784			—			30,905
Trust expenses and income taxes	(2,657		)	(3,087		)	(1,009		)	—			(6,753		)
Net trust investment income	23,988			27,746			11,328			—			63,062
Reclassification to deferred preneed funeral and cemetery receipts held in trust and care trusts’ corpus	(23,988		)	(27,746		)	(11,328		)	—			(63,062		)
Other income (expense), net	—			—			—			(695		)	(695		)
Total other income (expense), net	$	—		$	—		$	—		$	(695	)	$	(695	)



	Six Months Ended June 30, 2013
	Funeral Trusts			Cemetery Trusts			Cemetery Perpetual Care Trusts			Other, Net			Total
				(In thousands)
Realized gains	$	28,701		$	46,319		$	8,901		$	—		$	83,921
Realized losses	(6,166		)	(9,055		)	(762		)	—			(15,983		)
Impairment charges	(646		)	(1,297		)	(189		)	—			(2,132		)
Interest, dividend, and other ordinary income	16,023			10,444			13,873			—			40,340
Trust expenses and income taxes	(5,038		)	(6,756		)	(1,584		)	—			(13,378		)
Net trust investment income	32,874			39,655			20,239			—			92,768
Reclassification to deferred preneed funeral and cemetery receipts held in trust and care trusts’ corpus	(32,874		)	(39,655		)	(20,239		)	—			(92,768		)
Other income (expense), net	—			—			—			(1,680		)	(1,680		)
Total other income (expense), net	$	—		$	—		$	—		$	(1,680	)	$	(1,680	)